Does a foreign nonprofit corporation have to register to transact business in Texas if its only contact with the state is solicitation of funds or donations?
A nonprofit corporation that actively solicits funds in Texas may be “transacting business” in Texas and should file an Application for Registration; however, if the corporation’s contacts with Texas are only through interstate commerce (for example, by mail or by telephone) or independent contractors, then the corporation is probably not “transacting business” in Texas.
A nonprofit corporation that actively solicits funds in Texas may be “transacting business” in Texas and should file an Application for Registration (See Form 302 (Word 182kb, Acrobat 137kb); however, if the corporation’s contacts with Texas are only through interstate commerce (for example, by mail or by telephone) or independent contractors, then the corporation is probably not “transacting business” in Texas. However, regardless of the manner of solicitation, an out-of-state nonprofit corporation may be required to register with the secretary of state in order to participate in a state employee charitable campaign under subchapter I, chapter 659 of the Government Code.
Related Questions
- Does a foreign nonprofit corporation have to qualify to conduct its affairs in Texas if its only contact with the state is solicitation of funds or donations?
- Does a foreign nonprofit corporation have to register to transact business in Texas if its only contact with the state is solicitation of funds or donations?
- If a foreign entity intends to or is already transacting business in Texas, what are the penalties for not registering with the Secretary of State?
